Smart Cost Reduction

FEV Smart Cost

Reduction

Intensifying competition in global sales markets, consolidation of suppliers, rising cost sensitivity of clients and the need for technical innovations in shortening time cycles, is increasing the cost pressure for many companies. A structured and comprehensive cost & value engineering approach is key to meet customer requests at minimum costs. The unique FEV consulting approach “Smart Cost Reduction” offers eight professional service modules to achieve best cost solutions for technical products.

Using an interdisciplinary approach, FEV engineering, production, cost calculation and procurement experts realize significant cost savings. FEV supports the entire product life cycle with focus on cost & value optimization: From target cost determination, cost and specification analysis, benchmarking and bottom-up should cost calculation to idea workshops, global sourcing and supplier development as well as redesign activities and optimization of the organization and processes.

#1 Target CostingTarget costs are determined using a practical and proven process which considers customer requests and bottom-up calculation results and will provide the foundation for a life cycle cost management.

#2 Data Analysis &SpecificationDetailed analysis of the existing cost structure and an assessment of the current specifications to highlight cost drivers, potential over-engineering and quick win savings.

#3 BenchmarkingThe FEV benchmarking analyzes competitor technology and cost structures in detail and provides the basis for the identification of best practice solutions and cost saving levers.

#4 Cost CalculationOur detailed process and manufacturing know-how enables us to conduct a transparent bottom-up should-cost analysis as a basis for cost improvement and supplier negotiation.

#6 Sourcing &Supplier ManagementWorldwide FEV sourcing experts run a global sourcing process in order to identify and assess potential suppliers. A structured supplier management supports the negotiation with and development of current suppliers.